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REAL ESTATE: Sagax (SAGAX: Baa2/BBB+): Preview 15th July Results

REAL ESTATE
  • Steady: EPS estimates for SAGAX have been drifting slightly lower since the start of the year as the Finnish (33%) economy struggles.
  • The Swedish (25%) economy is doing somewhat better which offsets this. 
  • Nevertheless, SAGAX’s equity is riding close to recent highs.
  • They issued equity SEK 2.12b of equity last year and were upgraded in Aug ’23 by Moody’s.
  • In terms of bonds, they need to roll over about €500m per year and have already issued a €500m Green deal in May which rallied -10bps. 
  • Unlikely to issue again this year.  
  • Notably, SEK issuance seems to have stopped for the company.

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